DonorAdvisor FAQs
also available in PDF

What is the process to establish a Global Gift Fund?

 A Global Gift Fund must be established with a DonorAdvisor™.  A DonorAdvisor  is an MDRT member or other professional advisor who: 1) has completed the application form and submitted payment in the amount of $75 for the annual DonorAdvisor affiliation fee, 2) has agreed to comply with Global Gift Fund policies and procedures and 3) has taken the self-study course and completed the self-administered DonorAdvisor exam.

Are all MDRT members and professional advisors considered a DonorAdvisor?

 No. You need to complete the necessary requirements to become a DonorAdvisor. The purpose of the training program and exam is to ensure that everyone understands and follows the policies of the Global Gift Fund, all of which comply with the IRS regulations and good charitable practices.

Do I have to be a member of the MDRT to be a DonorAdvisor?

 No. All financial professionals who qualify as a DonorAdvisor are welcome to participate.  Licensed financial professionals may provide services to the Global Gift Fund as Registered Representatives or Registered Investment Advisors.

What does the annual DonorAdvisor fee include?

The fee includes:                           

• A DonorAdvisor manual, educational packet and exam
• PowerPoint presentation to promote philanthropy and the Global Gift Fund
• Discounts on Wealthy and Wiseâ, InsMark's estate and charitable planning system (This system contains an excellent on-line screen show and charitable giving video that should be useful in explaining charitable concepts to your clients.)
• Global Gift Fund promotional materials

What happens if I have a client who donates, but I do not become a DonorAdvisor?

Individuals who do not elect to become a DonorAdvisor can provide a client with information about Global Gift Fund;  however, the Global Gift Fund Application Agreement must be signed by an authorized DonorAdvisor.  Global Gift Fund can help identify a DonorAdvisor for your client.

Will I be paid for each Global Gift Fund that I establish?

No. The Global Gift Fund provides you with an opportunity to assist your client in funding charitable goals. However, there are opportunities for qualified individuals to be the investment representative for a client’s Global Gift Fund and earn commissions or fees.

What if a client establishes a fund before I qualify as a DonorAdvisor?

You can work with a client to establish a Global Gift Fund immediately; however, you will not be qualified as the DonorAdvisor for that account until you take the self-study course and exam.

Can I be the investment manager for the accounts that I establish?

Yes; however, you cannot manage funds unless you are a Registered Representative (Series 6 or 7), a Registered Investment Advisor (RIA), or an Investment Advisor Representative (IAR) who has an arrangement with the MDRT Foundation to provide investment management services. Global Gift Fund investments must be in specified mutual fund C or F shares or in advised funds following the model investment rules and regulations of the MDRT Foundation and the Global Gift Fund. In the absence of selections of specified funds, the MDRT Foundation investment managers will manage the account. In that event, a Registered Representative does not receive a commission. RIAs must submit ADV Parts I & II annually to the Foundation.

Can I manage investments on my own Global Gift Fund?

Yes. If you are an RIA or a Registered Representative of an RIA, you may manage your funds through your own management facilities; if you are a Registered Representative, you may purchase appropriate funds through your broker/dealer.

What types of investments are eligible?

For accounts of up to $100,000,  the investment of all Global Gift Fund accounts must be in an approved mutual fund family.  Currently, Global Gift Fund has pre-approved funds available in American Funds and Van Kampen Investments.  Other investment options are permitted for larger funds pending approval by the Gift Acceptance Committee of the MDRT Foundation in accordance with the investment policy of the MDRT Foundation.

What are the investment choices or guidelines for selecting a mutual fund?

 The following guidelines should be used:

Cash Preservation Model:

Money Market account

Cash Management account

Moderate Model:

Balanced Fund account

Moderate Investment Fund

Conservative Model:

Bond Fund

Fixed Income account

Growth Model:

Growth Fund

Indexed Growth account

What is the minimum contribution to establish a fund?

The minimum contribution to establish a Global Gift Fund is as follows:

• Minimum fund size is $25,000 (excluding those established with planned gifts). Funds may be opened $10,000 if accompanied by a letter of intent to bring the account up to $25,000 within 24 months
• Planned Gifts must meet Global Gift Fund minimums at maturity
• Life insurance must include a minimum 5% of death benefit as an unrestricted gift to the MDRT Foundation.  Premium paying policies must have a minimum face amount of $100,000

What is the minimum amount for additional contributions to a fund?

The minimum additional contribution is $1,000 and a contribution form must be completed.

When can donors make grant recommendations?

At any time, using the grant application form provided. Grants are processed upon receipt and generally takes up to three weeks for the processing of the grant.  You will be notified in writing of any grant which is not approved.

How many grants can be made each year?

There is no maximum, however, the number of recommended distributions is based on the fair market value of the account as of the first day of the year based on the following schedule:

Account Value                    Grant Distributions

Below $25,000                      5 grants annually

$25,000 to $49,999               10 grants annually

$50,000 to $99,999               15 grants annually

Over $100,000                      20 grants annually

What types of grants are made?

Grants are made only to qualified 501(c)(3) organizations or to state and local government organizations within the United States that are qualified to receive charitable contributions (e.g., public libraries, schools, and state colleges). 

Grants may not be used to fulfill a pledge, support political causes or be made to an individual or a private foundation.

Neither the donor, nor anyone related to the donor, may receive any benefit from the  recommended charitable contribution (i.e., the grant cannot pay for membership fees, dues, tuition, benefit tickets, concerts, goods bought at auction, etc.).

Are there charges assessed for maintenance of a Global Gift Fund?

There is an initial set up charge of $125.00 per account. In addition, a maintenance fee, based upon the fund value, and an annual account fee are charged to the account.

What are the specific steps to get started as a DonorAdvisor?

• Request an information kit from the MDRT Foundation.
• Complete the DonorAdvisor application form and submit it with your $75 payment
• Prepare to take the self-exam to demonstrate your knowledge of how the Global Gift Fund works and how to assist your clients.
• Become familiar with the investment options that you are qualified to use.
• Identify your clients that are candidates for a charitable gift fund.
• Talk to your clients:    
• Inquire about their charitable giving and interests
• Discuss their desire to create a Family Legacy
• Suggest they think about starting a GGF Donor Advised Fund (suggest they read the Guide to Charitable Giving booklet)
• Suggest the tax benefits they might enjoy through philanthropy
• Determine whether they want to open a fund now or, perhaps, have you discuss it with the whole family

How do I receive further information on the Global Gift Fund and DonorAdvisor™ program?

For further information, please contact:

Global Gift Fund

MDRT Foundation

325 W. Touhy Ave

Park Ridge, IL  60068

Toll free: (877) 685-4644

www.globalgiftfund.org

Global Gift Fund® is a registered trademark of the MDRT Foundation.
DonorAdvisor™ & GiftAdvisor™ are trademarks of the MDRT Foundation.